The mood in equity markets is upbeat following last night’s update from the Federal Reserve. Earlier this month the US central bank hiked interest rates by 50 basis points – meeting forecasts – and last night the minutes from that meeting were released.
Traders are a little optimistic ahead of the release of the minutes from the recent Federal Reserve meeting, where rates were hiked by 0.5%.
The euro is higher again as Christine Lagarde – the European Central Bank president - said she is attentive to the exchange rate.
Lately there has been growing chatter the European Central Bank might lift interest rates in July, and this morning, Christine Lagarde dropped a big hint that rates will be lifted.
The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.
Markets have fallen back into their old habits as an increase in yields has sparked a sell-off in stocks. Equity markets experienced low volatility at the start of the week and that was because US bond yields cooled, but today the 10-year yield traded above 3%, which speed up the decline in equities.
Equity markets are enjoying a rally as a bullish mood is dominate on both sides of the Atlantic.
The latest data from China highlights the impact of the lockdown in Shanghai – the country’s largest city.
Volatility is relatively low today as we near the close of trading. Equity markets are showing strong gains as bargain hunters have snapped up stocks.
European stock markets are deep in the red as the brutal sell-off seen on Wall Street last night has set the tone for today.
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